Average Cost of a House in Hakodate, Hokkaido
Working as real estate consultants here in Hokkaido, we have some requests from clients that want to buy a house in Hakodate. In this post we will focus on the average price for a detached home in Hakodate, as well as some estimates for the average cost for a Hakodate condominium.
Hakodate is the third largest city in Hokkaido. As the population of Hakodate is just over 200,000 people, it is not a very large city, and real estate data for home sales in Hakodate is limited. In our comments below we will share some of the best available data on the average price for a house in Hakodate, compare detached home prices to to condominium prices in Hakodate, include some inter-city comparisons to detached homes in Sapporo, and share some detail on the decision to rent vs buy property in the Hakodate area.
When you’re ready to talk to local real estate agents in the Hakodate that can advise you and help you see property in person, contact us for a personalized introduction to a local agent.
Average Price of a House in Hakodate
How much does it cost to buy a house in in Hakodate?
Based on our review of various government data, the average price for a detached home in Hakodate is ¥12,900,000 (or approximately $86,000 USD, as of 2023).
The total cost to buy a a single-family home in Hakodate is lower than many other cities. Getting a loan to buy real estate in Japan as a foreigner is difficult in most cases. However, the low total purchase price for a Hakodate home could make an all-cash purchase possible. Compared to higher-priced areas like Sapporo or for property in Niseko, Hakodate might be a better choice for some buyers.
Housing Prices in Hakodate
Using some data from the Japanese multiple listing service REINS, we can provide some more details on the cost for a house in Hakodate.
Above we said that “average” price for a home in Hakodate is ¥12,900,000. There is additional data available on recent sales prices for homes in Hakodate based on the size of the structure.
For instance, recent data shows the average cost for a two bedroom house in Hakodate is ¥10,200,000 (or approximately $68,300 USD, as of late 2023). For a three bedroom house in Hakodate, recent data shows an average sales price of ¥12,900,000 ($86,000 USD). Four bedroom houses in Hakodate exist, but there is less reliable data for properties of that size.
Average price for a Condominium in Hakodate
Of course there are also condominiums for sale in Hakodate (the Japanese would call these units Hakodate “mansions”).
The average price for a Hakodate condominium is ¥11,000,000 (of $74,000 USD, as of late 2023). That is lower than the Hakodate home average price, but it also includes homes with much smaller living areas.
If “one room homes” exist in Hakodate, there is not much data about those sales, but “studio apartments for sale” in Hakodate (1DK mansions) are common. The average price for a 1DK condominium in Hakodate is only ¥2,000,000 (close to $13,000 USD as of late 2023). That is a surprisingly low number, but when you imagine that there are multiple mansions in the same building (all built on the same land), and that studio condominiums in Hakodate would be very small, you can better understand how that low price could be possible.
The average price for a 1LDK condominium in Hakodate is ¥4,700,000 (or $31,300 USD). One bedroom mansions in Hakodate are considerably more expensive than smaller units, because as you add a bedroom the livable space would almost double in size.
As you move up to a 2LDK condominium in Hakodate, the price increases substantially. According to recent sales data, the average price for a 2LDK mansion in Hakodate is ¥14,200,000 (or $95,000 USD). For this size unit, the price is more expensive than a 2LDK detached home. It is likely that some of the two bedroom condominiums in Hakodate are premium real estate, possibly newer, or in a better locations (closer to the train station), and are a more popular lifestyle choice than single-family homes of the same size.
There are three bedroom (3LDK) condominiums in Hakodate. Sales records show they can be less expensive than 2LDKs (but there is less data for this category, and could be based on units that aren’t really equivalent in quality or location).
In general, the size of the unit is just one factor that influences the price for a home in Hakodate. When a condo for sale in Hakodate is significantly more expensive than one of the same size, it is probably because that unit is in a better location, and more modern than other homes in the area.
Hakodate Housing Costs vs a House in Sapporo
When we wrote our article on the Sapporo housing costs, we show that the average cost of a house in Sapporo is ¥27,552,800 (or ~$184,000 USD as of late 2023). Comparing Sapporo and Hakodate home prices shows that Sapporo houses are something like 100% more expensive that Hakodate. Recent data also shows significant appreciation of Sapporo land prices; that difference in value between Sapporo and Hakodate may get even bigger as demand for Sapporo property increases.
Hakodate and Sapporo are very different cities. The lower cost to purchase a home in Hakodate will be the deciding factor for some buyers. For others, even as Sapporo is a more expensive city, it will offer more opportunities for work, better transportation, better entertainment options, and access to the international school in Hokkaido.
Buying a House in Hakodate vs Renting an Apartment
Besides buying a house, there are opportunities to rent an apartment in Hakodate. We provide more details on apartments for rent in Hakodate in a separate post, but for a rough estimate, the average cost for an Hakodate apartment is approximately ¥67,240 (or about $450 USD, as of late 2023).
Interestingly, the average cost of renting an apartment in Sapporo is lower. Why is that? Because Sapporo is a much bigger city, and has a larger supply of housing in general, and certainly more apartments. More supply typically reduces price. It is less expensive to rent an apartment in Sapporo than it is in Hakodate.
Buying a house in Hakodate may be a better bargain vs the bigger cities in Hokkaido, but renting an apartment in Hakodate likely won’t save you much in terms of monthly expenses versus other cities.
What is “Average?”
As we usual say when we talk about “average prices,” your choices can have a big impact on what you might pay for a Hakodate home for sale. As usual, the proximity to the train station, the size of the unit, the year it was constructed, the choices of materials, the access to roads that offer snow removal (vs those that do not), can make a big different in what you might pay for a Hakodate home.
Land for Sale in Hakodate
Like most cities in Japan, you can of course buy land in Hakodate, and then work with a Hokkaido architect or a local builder to construct a custom home.
Real estate values are generally down somewhat in the region, but as the shinkansen services comes to Hokkaido sometime after 2030, it is possible that the average price of land in Hakodate may increase.
Hokkaido Shinkansen and Hakodate
As of the time of this post (2023), there is already a shinkansen that connects the Hakodate region to the main island of Japan. The shinkansen from Honshu doesn’t connect to Hakodate directly, but it does terminate nearby (and you can take a local train from the shinkansen station into the city of Hakodate).
However, beginning sometime after 2030, the shinkansen will continue past Hakodate, routing through Niseko and Otaru, and then connect to Sapporo. This is a massive infrastructure project, that will bring more travelers and attention to Hokkaido, and may bring more opportunity for Hakodate as well.
Real Estate Agents in Hakodate
We make person-to-person introductions to prescreened real estate agents in Hakodate.
Working with a local Hakodate real estate agent, you can get recommendations about where to live, specific details about pricing and resale trends, and make in-person visits to help you rent an Hakodate apartment or to see available Hakodate houses for sale. Contact us and we will find you an available agent to help you learn more.
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We provide person-to-person introductions to prescreened agents that help you sell, buy, lease, or rent property in Hokkaido. We search our custom database to connect you to real estate professionals that speak your language, address your needs and are available now to help you find what you want.
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For More Information:
— Recent data on Apartments for Rent in Hakodate
— Information about Land for Sale in Hakodate
— Current detail on the Hakodate Population (by year)
— Find Lawyers in Hokkaido
— Tax Offices in Sapporo
— Our Taxes in Japan page
— Buying Property in Hokkaido as a Foreigner
— The best Books about Real Estate in Japan